{smcl}
{txt}{sf}{ul off}{.-}
      name:  {res}<unnamed>
       {txt}log:  {res}\\file\UsersW$\wrr15\Home\My Documents\My Files\FIGO'S PAPER\REVISION FOR ECONOMICS E-JOURNAL\Revision (20180407)\FILES FROM FIGO (20180420)\Robust1Results.smcl
  {txt}log type:  {res}smcl
 {txt}opened on:  {res}20 Apr 2018, 09:05:48
{txt}
{com}. 
. etime, start
{txt}
{com}. 
. use "\\file\UsersW$\wrr15\Home\My Documents\My Files\FIGO'S PAPER\REVISION FOR ECONOMICS E-JOURNAL\Revision (20180407)\FILES FROM FIGO (20180420)\FullSample1998-2011.dta"
{txt}
{com}. 
. rename YEAR year
{res}{txt}
{com}. 
. keep if ASSETS>0 
{txt}(0 observations deleted)

{com}. keep if PROFITS>0
{txt}(0 observations deleted)

{com}. keep if EMP>8
{txt}(0 observations deleted)

{com}. drop if DEBT<0  
{txt}(0 observations deleted)

{com}. 
. // We need to delete the fake MNCs by using the following two criteria
. 
. keep if FOREIGNCAPITAL > 0
{txt}(19,083 observations deleted)

{com}. gen ratio = FOREIGNCAPITAL/TOTALCAPITAL
{txt}(40,241 missing values generated)

{com}. keep if ratio > 0.25
{txt}(9,873 observations deleted)

{com}. 
. gen d=substr(regst_type,1,1)
{txt}
{com}. 
. count if d=="1"| d=="2"
  {res}0
{txt}
{com}. drop if d=="1" | d=="2" 
{txt}(0 observations deleted)

{com}. // 1 means the state-owned and private enterprise of China. 2 means the enterprises 
. // invested by HMT(Hong Kong, Macao, and Taiwan). 3 means the enterprise invested by foreign economies except HMT.
. 
. keep if d == "3"
{txt}(54 observations deleted)

{com}. 
. // We use ETR
. keep if ETR<100
{txt}(0 observations deleted)

{com}. keep if ETR>0
{txt}(0 observations deleted)

{com}. 
. // If we want, we can redo the analysis by dropping all observations where ETR > 33 percent.
. // drop if ETR > 33
. 
. 
. // This creates year dummies
. tabulate year, gen(year)

       {txt}year {c |}      Freq.     Percent        Cum.
{hline 12}{c +}{hline 35}
       1998 {c |}{res}      2,218        1.57        1.57
{txt}       1999 {c |}{res}      2,647        1.88        3.45
{txt}       2000 {c |}{res}      3,192        2.26        5.71
{txt}       2001 {c |}{res}      3,771        2.67        8.38
{txt}       2002 {c |}{res}      4,555        3.23       11.61
{txt}       2003 {c |}{res}      5,552        3.93       15.54
{txt}       2004 {c |}{res}      9,088        6.44       21.98
{txt}       2005 {c |}{res}      9,779        6.93       28.91
{txt}       2006 {c |}{res}     11,670        8.27       37.17
{txt}       2007 {c |}{res}     13,152        9.32       46.49
{txt}       2008 {c |}{res}     14,820       10.50       56.99
{txt}       2009 {c |}{res}     20,855       14.77       71.76
{txt}       2010 {c |}{res}     19,034       13.48       85.25
{txt}       2011 {c |}{res}     20,825       14.75      100.00
{txt}{hline 12}{c +}{hline 35}
      Total {c |}{res}    141,158      100.00
{txt}
{com}. // To make the output easier to read, we rename the year dummies
. rename year14  y2011
{res}{txt}
{com}. rename year13  y2010
{res}{txt}
{com}. rename year12  y2009
{res}{txt}
{com}. rename year11  y2008
{res}{txt}
{com}. rename year10  y2007
{res}{txt}
{com}. rename year9  y2006
{res}{txt}
{com}. rename year8  y2005
{res}{txt}
{com}. rename year7  y2004
{res}{txt}
{com}. rename year6  y2003
{res}{txt}
{com}. rename year5  y2002
{res}{txt}
{com}. rename year4  y2001
{res}{txt}
{com}. rename year3  y2000
{res}{txt}
{com}. rename year2  y1999
{res}{txt}
{com}. rename year1  y1998
{res}{txt}
{com}. 
. // This sets the sample we will work on in the subsequent analysis
. quietly reg lnPROFITS ETR lnSALES lnEMP lnGDP lnKLRAT lnSKILL lnLABOR lnMARK ///
> lnPOPDEN lnINFRAS lnFINANCE lnINVFOR y2005-y2009 if year < 2010, vce(cluster FIRM_id)
{txt}
{com}. gen insample = e(sample)
{txt}
{com}. 
. 
. ***********************
. ***********************
. ******           ******
. ******  PROFITS  ******
. ******           ******
. ***********************
. ***********************
. 
. // This section produces the results for TABLE 9
. keep if insample == 1
{txt}(83,356 observations deleted)

{com}. bysort FIRM_id: egen N = count(FIRM_id)
{txt}
{com}. tabulate N 

          {txt}N {c |}      Freq.     Percent        Cum.
{hline 12}{c +}{hline 35}
          1 {c |}{res}     13,002       22.49       22.49
{txt}          2 {c |}{res}     12,416       21.48       43.97
{txt}          3 {c |}{res}     13,230       22.89       66.86
{txt}          4 {c |}{res}     11,932       20.64       87.51
{txt}          5 {c |}{res}      7,165       12.40       99.90
{txt}          6 {c |}{res}         24        0.04       99.94
{txt}          7 {c |}{res}         14        0.02       99.97
{txt}          9 {c |}{res}          9        0.02       99.98
{txt}         10 {c |}{res}         10        0.02      100.00
{txt}{hline 12}{c +}{hline 35}
      Total {c |}{res}     57,802      100.00
{txt}
{com}. 
. // This confirms that our sample is restricted to those cases where we have 
. // between 2 and 5 obserations per firm ID 
. keep if N > 1 & N < 6
{txt}(13,059 observations deleted)

{com}. tabulate N

          {txt}N {c |}      Freq.     Percent        Cum.
{hline 12}{c +}{hline 35}
          2 {c |}{res}     12,416       27.75       27.75
{txt}          3 {c |}{res}     13,230       29.57       57.32
{txt}          4 {c |}{res}     11,932       26.67       83.99
{txt}          5 {c |}{res}      7,165       16.01      100.00
{txt}{hline 12}{c +}{hline 35}
      Total {c |}{res}     44,743      100.00
{txt}
{com}. 
. // This next section produces the results for TABLE 10
. 
. // This calculates the xbar terms
. foreach i in ETR lnSALES lnEMP lnGDP lnKLRAT lnSKILL lnLABOR lnMARK lnPOPDEN lnINFRAS lnFINANCE lnINVFOR y2006 y2007 y2008 y2009 {c -(}
{txt}  2{com}. bysort FIRM_id: egen `i'bar = mean(`i')
{txt}  3{com}. {c )-}
{txt}
{com}. 
. ******** WITHOUT INTERACTION EFFECT ***********
. 
. nbreg PROFITS ETR lnSALES lnEMP lnGDP lnKLRAT lnSKILL lnLABOR lnMARK lnPOPDEN ///
>   lnINFRAS lnFINANCE lnINVFOR y2006-y2009 ETRbar lnSALESbar lnEMPbar lnGDPbar ///
>   lnKLRATbar lnSKILLbar lnLABORbar lnMARKbar lnPOPDENbar lnINFRASbar lnFINANCEbar ///
>   lnINVFORbar y2006bar y2007bar y2008bar y2009bar if insample == 1, dispersion(constant) vce(cluster FIRM_id)

{txt}Fitting Poisson model:
{res}
{txt}Iteration 0:{space 3}log pseudolikelihood = {res:-1.628e+09}  
Iteration 1:{space 3}log pseudolikelihood = {res:-7.057e+08}  
Iteration 2:{space 3}log pseudolikelihood = {res:-4.152e+08}  
Iteration 3:{space 3}log pseudolikelihood = {res:-4.097e+08}  
Iteration 4:{space 3}log pseudolikelihood = {res:-4.097e+08}  
Iteration 5:{space 3}log pseudolikelihood = {res:-4.097e+08}  
{res}
{txt}Fitting constant-only model:
{res}
{txt}Iteration 0:{space 3}log pseudolikelihood = {res:-8.758e+08}  
Iteration 1:{space 3}log pseudolikelihood = {res:-528895.02}  
Iteration 2:{space 3}log pseudolikelihood = {res:-473186.66}  
Iteration 3:{space 3}log pseudolikelihood = {res:-473126.94}  
Iteration 4:{space 3}log pseudolikelihood = {res:-473126.91}  
{res}
{txt}Fitting full model:
{res}
{txt}Iteration 0:{space 3}log pseudolikelihood = {res:-473126.91}  
Iteration 1:{space 3}log pseudolikelihood = {res:-461708.75}  
Iteration 2:{space 3}log pseudolikelihood = {res:-459174.38}  
Iteration 3:{space 3}log pseudolikelihood = {res: -458285.8}  
Iteration 4:{space 3}log pseudolikelihood = {res:-458277.47}  
Iteration 5:{space 3}log pseudolikelihood = {res:-458277.46}  
{res}
{txt}Negative binomial regression{col 49}Number of obs{col 67}= {res}    44,743
{txt}{col 49}Wald chi2({res}32{txt}){col 67}= {res}   2741.31
{txt}{col 1}Dispersion{col 22}= {res}constant{txt}{col 49}Prob > chi2{col 67}= {res}    0.0000
{txt}Log pseudolikelihood = {res}-458277.46{txt}{col 49}Pseudo R2{col 67}= {res}    0.0314

{txt}{ralign 78:(Std. Err. adjusted for {res:15,034} clusters in FIRM_id)}
{hline 13}{c TT}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{col 14}{c |}{col 26}    Robust
{col 1}     PROFITS{col 14}{c |}      Coef.{col 26}   Std. Err.{col 38}      z{col 46}   P>|z|{col 54}     [95% Con{col 67}f. Interval]
{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{space 9}ETR {c |}{col 14}{res}{space 2}-.0108021{col 26}{space 2} .0012642{col 37}{space 1}   -8.54{col 46}{space 3}0.000{col 54}{space 4}-.0132798{col 67}{space 3}-.0083244
{txt}{space 5}lnSALES {c |}{col 14}{res}{space 2} .5095635{col 26}{space 2} .0268068{col 37}{space 1}   19.01{col 46}{space 3}0.000{col 54}{space 4} .4570231{col 67}{space 3} .5621039
{txt}{space 7}lnEMP {c |}{col 14}{res}{space 2} .1117952{col 26}{space 2} .0264635{col 37}{space 1}    4.22{col 46}{space 3}0.000{col 54}{space 4} .0599278{col 67}{space 3} .1636627
{txt}{space 7}lnGDP {c |}{col 14}{res}{space 2}  .368749{col 26}{space 2} .2018921{col 37}{space 1}    1.83{col 46}{space 3}0.068{col 54}{space 4}-.0269522{col 67}{space 3} .7644501
{txt}{space 5}lnKLRAT {c |}{col 14}{res}{space 2} .0131619{col 26}{space 2} .0142243{col 37}{space 1}    0.93{col 46}{space 3}0.355{col 54}{space 4}-.0147171{col 67}{space 3}  .041041
{txt}{space 5}lnSKILL {c |}{col 14}{res}{space 2}-.0829446{col 26}{space 2} .0481661{col 37}{space 1}   -1.72{col 46}{space 3}0.085{col 54}{space 4}-.1773485{col 67}{space 3} .0114593
{txt}{space 5}lnLABOR {c |}{col 14}{res}{space 2}-.0298603{col 26}{space 2} .0898821{col 37}{space 1}   -0.33{col 46}{space 3}0.740{col 54}{space 4}-.2060259{col 67}{space 3} .1463053
{txt}{space 6}lnMARK {c |}{col 14}{res}{space 2}  .097981{col 26}{space 2} .1149206{col 37}{space 1}    0.85{col 46}{space 3}0.394{col 54}{space 4}-.1272593{col 67}{space 3} .3232213
{txt}{space 4}lnPOPDEN {c |}{col 14}{res}{space 2}-.2317104{col 26}{space 2} .0937008{col 37}{space 1}   -2.47{col 46}{space 3}0.013{col 54}{space 4}-.4153606{col 67}{space 3}-.0480601
{txt}{space 4}lnINFRAS {c |}{col 14}{res}{space 2}-.1232917{col 26}{space 2} .0557091{col 37}{space 1}   -2.21{col 46}{space 3}0.027{col 54}{space 4}-.2324796{col 67}{space 3}-.0141038
{txt}{space 3}lnFINANCE {c |}{col 14}{res}{space 2}-.0754618{col 26}{space 2} .0601102{col 37}{space 1}   -1.26{col 46}{space 3}0.209{col 54}{space 4}-.1932756{col 67}{space 3} .0423519
{txt}{space 4}lnINVFOR {c |}{col 14}{res}{space 2} -.006253{col 26}{space 2} .0417884{col 37}{space 1}   -0.15{col 46}{space 3}0.881{col 54}{space 4}-.0881568{col 67}{space 3} .0756508
{txt}{space 7}y2006 {c |}{col 14}{res}{space 2}-.0468887{col 26}{space 2} .0322121{col 37}{space 1}   -1.46{col 46}{space 3}0.145{col 54}{space 4}-.1100232{col 67}{space 3} .0162458
{txt}{space 7}y2007 {c |}{col 14}{res}{space 2}-.0743977{col 26}{space 2} .0632324{col 37}{space 1}   -1.18{col 46}{space 3}0.239{col 54}{space 4}-.1983309{col 67}{space 3} .0495355
{txt}{space 7}y2008 {c |}{col 14}{res}{space 2}-.1435152{col 26}{space 2} .0885441{col 37}{space 1}   -1.62{col 46}{space 3}0.105{col 54}{space 4}-.3170584{col 67}{space 3}  .030028
{txt}{space 7}y2009 {c |}{col 14}{res}{space 2}-.0470709{col 26}{space 2}  .109604{col 37}{space 1}   -0.43{col 46}{space 3}0.668{col 54}{space 4}-.2618908{col 67}{space 3} .1677491
{txt}{space 6}ETRbar {c |}{col 14}{res}{space 2}-.0000544{col 26}{space 2} .0031879{col 37}{space 1}   -0.02{col 46}{space 3}0.986{col 54}{space 4}-.0063027{col 67}{space 3} .0061938
{txt}{space 2}lnSALESbar {c |}{col 14}{res}{space 2} .0869723{col 26}{space 2} .0263304{col 37}{space 1}    3.30{col 46}{space 3}0.001{col 54}{space 4} .0353655{col 67}{space 3}  .138579
{txt}{space 4}lnEMPbar {c |}{col 14}{res}{space 2} -.071924{col 26}{space 2} .0304551{col 37}{space 1}   -2.36{col 46}{space 3}0.018{col 54}{space 4}-.1316149{col 67}{space 3}-.0122331
{txt}{space 4}lnGDPbar {c |}{col 14}{res}{space 2} -.181365{col 26}{space 2} .1995854{col 37}{space 1}   -0.91{col 46}{space 3}0.364{col 54}{space 4}-.5725451{col 67}{space 3} .2098151
{txt}{space 2}lnKLRATbar {c |}{col 14}{res}{space 2} .0915147{col 26}{space 2} .0184041{col 37}{space 1}    4.97{col 46}{space 3}0.000{col 54}{space 4} .0554434{col 67}{space 3}  .127586
{txt}{space 2}lnSKILLbar {c |}{col 14}{res}{space 2} .1036187{col 26}{space 2}  .057812{col 37}{space 1}    1.79{col 46}{space 3}0.073{col 54}{space 4}-.0096908{col 67}{space 3} .2169282
{txt}{space 2}lnLABORbar {c |}{col 14}{res}{space 2}-.1211614{col 26}{space 2} .1479683{col 37}{space 1}   -0.82{col 46}{space 3}0.413{col 54}{space 4}-.4111739{col 67}{space 3} .1688512
{txt}{space 3}lnMARKbar {c |}{col 14}{res}{space 2} .0626743{col 26}{space 2} .1220141{col 37}{space 1}    0.51{col 46}{space 3}0.607{col 54}{space 4}-.1764689{col 67}{space 3} .3018175
{txt}{space 1}lnPOPDENbar {c |}{col 14}{res}{space 2} .1616795{col 26}{space 2} .0928218{col 37}{space 1}    1.74{col 46}{space 3}0.082{col 54}{space 4}-.0202478{col 67}{space 3} .3436068
{txt}{space 1}lnINFRASbar {c |}{col 14}{res}{space 2} .1519077{col 26}{space 2} .0629665{col 37}{space 1}    2.41{col 46}{space 3}0.016{col 54}{space 4} .0284957{col 67}{space 3} .2753197
{txt}lnFINANCEbar {c |}{col 14}{res}{space 2}-.0715574{col 26}{space 2} .0806833{col 37}{space 1}   -0.89{col 46}{space 3}0.375{col 54}{space 4}-.2296938{col 67}{space 3} .0865789
{txt}{space 1}lnINVFORbar {c |}{col 14}{res}{space 2}-.0566652{col 26}{space 2} .0458647{col 37}{space 1}   -1.24{col 46}{space 3}0.217{col 54}{space 4}-.1465583{col 67}{space 3}  .033228
{txt}{space 4}y2006bar {c |}{col 14}{res}{space 2} .0284173{col 26}{space 2} .1162473{col 37}{space 1}    0.24{col 46}{space 3}0.807{col 54}{space 4}-.1994232{col 67}{space 3} .2562578
{txt}{space 4}y2007bar {c |}{col 14}{res}{space 2}-.1006931{col 26}{space 2} .1265652{col 37}{space 1}   -0.80{col 46}{space 3}0.426{col 54}{space 4}-.3487564{col 67}{space 3} .1473702
{txt}{space 4}y2008bar {c |}{col 14}{res}{space 2} .2903917{col 26}{space 2} .1581327{col 37}{space 1}    1.84{col 46}{space 3}0.066{col 54}{space 4}-.0195426{col 67}{space 3}  .600326
{txt}{space 4}y2009bar {c |}{col 14}{res}{space 2}-.0970181{col 26}{space 2} .1740052{col 37}{space 1}   -0.56{col 46}{space 3}0.577{col 54}{space 4}-.4380621{col 67}{space 3} .2440258
{txt}{space 7}_cons {c |}{col 14}{res}{space 2} 1.101392{col 26}{space 2} 1.197495{col 37}{space 1}    0.92{col 46}{space 3}0.358{col 54}{space 4}-1.245656{col 67}{space 3} 3.448439
{txt}{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{space 4}/lndelta {c |}{col 14}{res}{space 2} 10.22376{col 26}{space 2} .0651182{col 54}{space 4} 10.09614{col 67}{space 3} 10.35139
{txt}{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
       delta {c |}{col 14}{res}{space 2} 27550.19{col 26}{space 2}  1794.02{col 54}{space 4} 24249.12{col 67}{space 3} 31300.65
{txt}{hline 13}{c BT}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}

{com}. est store component1
{txt}
{com}. estat ic

Akaike's information criterion and Bayesian information criterion

{txt}{hline 13}{c TT}{hline 63}
       Model {c |}        Obs  ll(null)  ll(model)      df         AIC        BIC
{hline 13}{c +}{hline 63}
{ralign 12:{stata estimates replay component1:component1}}{col 14}{c |}{res}{col 16}    44,743{col 27}-473126.9{col 38}-458277.5{col 49}    34{col 58} 916622.9{col 69}   916919
{txt}{hline 13}{c BT}{hline 63}
{p 15 21 2}
Note: N=Obs used in calculating BIC; see {helpb bic_note:[R] BIC note}.
{p_end}

{com}. matrix comp1 = r(S)
{txt}
{com}. 
. fmm 2 if insample == 1, vce(cluster FIRM_id)  : nbreg PROFITS ETR lnSALES lnEMP ///
>   lnGDP lnKLRAT lnSKILL lnLABOR lnMARK lnPOPDEN lnINFRAS lnFINANCE lnINVFOR ///
>   y2006-y2009 ETRbar lnSALESbar lnEMPbar lnGDPbar ///
>   lnKLRATbar lnSKILLbar lnLABORbar lnMARKbar lnPOPDENbar lnINFRASbar lnFINANCEbar ///
>   lnINVFORbar y2006bar y2007bar y2008bar y2009bar, dispersion(constant)
{res}{txt}
Fitting class model:

Iteration 0:{space 3}(class) log likelihood = {res:-31013.484}  
Iteration 1:{space 3}(class) log likelihood = {res:-31013.484}  

Fitting outcome model:

Iteration 0:{space 3}(outcome) log likelihood = {res:-3.417e+08}  (not concave)
Iteration 1:{space 3}(outcome) log likelihood = {res:-615202.55}  (not concave)
Iteration 2:{space 3}(outcome) log likelihood = {res:-571420.12}  (not concave)
Iteration 3:{space 3}(outcome) log likelihood = {res:-509111.13}  (not concave)
Iteration 4:{space 3}(outcome) log likelihood = {res:-480959.16}  (not concave)
Iteration 5:{space 3}(outcome) log likelihood = {res:-465085.94}  
Iteration 6:{space 3}(outcome) log likelihood = {res: -459833.6}  
Iteration 7:{space 3}(outcome) log likelihood = {res:-458686.13}  
Iteration 8:{space 3}(outcome) log likelihood = {res:-456994.84}  
Iteration 9:{space 3}(outcome) log likelihood = {res:-456929.76}  
Iteration 10:{space 2}(outcome) log likelihood = {res:-456929.59}  
Iteration 11:{space 2}(outcome) log likelihood = {res:-456929.59}  

Refining starting values:

Iteration 0:{space 3}(EM) log likelihood = {res:-482145.35}
Iteration 1:{space 3}(EM) log likelihood = {res:-474998.13}
Iteration 2:{space 3}(EM) log likelihood = {res:-468683.67}
Iteration 3:{space 3}(EM) log likelihood = {res:-464689.43}
Iteration 4:{space 3}(EM) log likelihood = {res:-462607.73}
Iteration 5:{space 3}(EM) log likelihood = {res:-461572.67}
Iteration 6:{space 3}(EM) log likelihood = {res:-461027.73}
Iteration 7:{space 3}(EM) log likelihood = {res:-460705.44}
Iteration 8:{space 3}(EM) log likelihood = {res: -460488.5}
Iteration 9:{space 3}(EM) log likelihood = {res:-460326.11}
Iteration 10:{space 2}(EM) log likelihood = {res:-460195.56}
Iteration 11:{space 2}(EM) log likelihood = {res:-460086.03}
Iteration 12:{space 2}(EM) log likelihood = {res:-459991.88}
Iteration 13:{space 2}(EM) log likelihood = {res:-459909.84}
Iteration 14:{space 2}(EM) log likelihood = {res:-459837.89}
Iteration 15:{space 2}(EM) log likelihood = {res: -459774.7}
Iteration 16:{space 2}(EM) log likelihood = {res:-459719.36}
Iteration 17:{space 2}(EM) log likelihood = {res: -459671.1}
Iteration 18:{space 2}(EM) log likelihood = {res:-459629.21}
Iteration 19:{space 2}(EM) log likelihood = {res:   -459593}
Iteration 20:{space 2}(EM) log likelihood = {res:-459561.79}
{p}
Note: EM algorithm reached maximum iterations.
{p_end}

Fitting full model:
{res}
{txt}Iteration 0:{space 3}log pseudolikelihood = {res: -445057.6}  
Iteration 1:{space 3}log pseudolikelihood = {res:-445055.31}  
Iteration 2:{space 3}log pseudolikelihood = {res:-445055.26}  
Iteration 3:{space 3}log pseudolikelihood = {res:-445055.26}  
{res}
{txt}Finite mixture model{col 49}Number of obs{col 67}= {res}    44,743
{txt}Log pseudolikelihood = {res}-445055.26

{txt}{ralign 78:(Std. Err. adjusted for {res:15,034} clusters in FIRM_id)}
{hline 13}{c TT}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{col 14}{c |}{col 26}    Robust
{col 14}{c |}      Coef.{col 26}   Std. Err.{col 38}      z{col 46}   P>|z|{col 54}     [95% Con{col 67}f. Interval]
{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{col 1}{res}1.Class     {col 14}{txt}{c |}  (base outcome)
{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{res}2.Class      {txt}{c |}
{space 7}_cons {c |}{col 14}{res}{space 2}-1.326803{col 26}{space 2} .0794051{col 37}{space 1}  -16.71{col 46}{space 3}0.000{col 54}{space 4}-1.482434{col 67}{space 3}-1.171172
{txt}{hline 13}{c BT}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{res}
{txt}Class{col 16}: {res}1
{txt}Response{col 16}: {res}PROFITS
{txt}Model{col 16}: {res}nbreg, dispersion(constant)

{txt}{ralign 78:(Std. Err. adjusted for {res:15,034} clusters in FIRM_id)}
{hline 13}{c TT}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{col 14}{c |}{col 26}    Robust
{col 14}{c |}      Coef.{col 26}   Std. Err.{col 38}      z{col 46}   P>|z|{col 54}     [95% Con{col 67}f. Interval]
{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{res}PROFITS      {txt}{c |}
{space 9}ETR {c |}{col 14}{res}{space 2}-.0119757{col 26}{space 2}  .000813{col 37}{space 1}  -14.73{col 46}{space 3}0.000{col 54}{space 4} -.013569{col 67}{space 3}-.0103823
{txt}{space 5}lnSALES {c |}{col 14}{res}{space 2} .6663415{col 26}{space 2} .0300914{col 37}{space 1}   22.14{col 46}{space 3}0.000{col 54}{space 4} .6073634{col 67}{space 3} .7253196
{txt}{space 7}lnEMP {c |}{col 14}{res}{space 2} .0583944{col 26}{space 2}   .03915{col 37}{space 1}    1.49{col 46}{space 3}0.136{col 54}{space 4}-.0183382{col 67}{space 3} .1351269
{txt}{space 7}lnGDP {c |}{col 14}{res}{space 2}-.1963309{col 26}{space 2} .2138047{col 37}{space 1}   -0.92{col 46}{space 3}0.358{col 54}{space 4}-.6153804{col 67}{space 3} .2227187
{txt}{space 5}lnKLRAT {c |}{col 14}{res}{space 2}-.0175442{col 26}{space 2} .0190175{col 37}{space 1}   -0.92{col 46}{space 3}0.356{col 54}{space 4}-.0548179{col 67}{space 3} .0197295
{txt}{space 5}lnSKILL {c |}{col 14}{res}{space 2} -.148821{col 26}{space 2} .0659153{col 37}{space 1}   -2.26{col 46}{space 3}0.024{col 54}{space 4}-.2780127{col 67}{space 3}-.0196294
{txt}{space 5}lnLABOR {c |}{col 14}{res}{space 2} .2227726{col 26}{space 2} .1284839{col 37}{space 1}    1.73{col 46}{space 3}0.083{col 54}{space 4}-.0290511{col 67}{space 3} .4745964
{txt}{space 6}lnMARK {c |}{col 14}{res}{space 2} .1884663{col 26}{space 2} .1555056{col 37}{space 1}    1.21{col 46}{space 3}0.226{col 54}{space 4} -.116319{col 67}{space 3} .4932517
{txt}{space 4}lnPOPDEN {c |}{col 14}{res}{space 2}-.7795369{col 26}{space 2} .1351617{col 37}{space 1}   -5.77{col 46}{space 3}0.000{col 54}{space 4}-1.044449{col 67}{space 3}-.5146249
{txt}{space 4}lnINFRAS {c |}{col 14}{res}{space 2}-.0468064{col 26}{space 2}   .06933{col 37}{space 1}   -0.68{col 46}{space 3}0.500{col 54}{space 4}-.1826907{col 67}{space 3}  .089078
{txt}{space 3}lnFINANCE {c |}{col 14}{res}{space 2}-.3789388{col 26}{space 2} .0870086{col 37}{space 1}   -4.36{col 46}{space 3}0.000{col 54}{space 4}-.5494726{col 67}{space 3} -.208405
{txt}{space 4}lnINVFOR {c |}{col 14}{res}{space 2} -.018582{col 26}{space 2} .0263859{col 37}{space 1}   -0.70{col 46}{space 3}0.481{col 54}{space 4}-.0702975{col 67}{space 3} .0331335
{txt}{space 7}y2006 {c |}{col 14}{res}{space 2} .0187396{col 26}{space 2} .0362754{col 37}{space 1}    0.52{col 46}{space 3}0.605{col 54}{space 4}-.0523589{col 67}{space 3} .0898381
{txt}{space 7}y2007 {c |}{col 14}{res}{space 2} .0155653{col 26}{space 2} .0732214{col 37}{space 1}    0.21{col 46}{space 3}0.832{col 54}{space 4} -.127946{col 67}{space 3} .1590765
{txt}{space 7}y2008 {c |}{col 14}{res}{space 2} .0337831{col 26}{space 2} .0988142{col 37}{space 1}    0.34{col 46}{space 3}0.732{col 54}{space 4}-.1598891{col 67}{space 3} .2274553
{txt}{space 7}y2009 {c |}{col 14}{res}{space 2} .1270351{col 26}{space 2} .1266209{col 37}{space 1}    1.00{col 46}{space 3}0.316{col 54}{space 4}-.1211374{col 67}{space 3} .3752076
{txt}{space 6}ETRbar {c |}{col 14}{res}{space 2}-.0060075{col 26}{space 2} .0014351{col 37}{space 1}   -4.19{col 46}{space 3}0.000{col 54}{space 4}-.0088202{col 67}{space 3}-.0031949
{txt}{space 2}lnSALESbar {c |}{col 14}{res}{space 2} .0395569{col 26}{space 2}  .030761{col 37}{space 1}    1.29{col 46}{space 3}0.198{col 54}{space 4}-.0207336{col 67}{space 3} .0998474
{txt}{space 4}lnEMPbar {c |}{col 14}{res}{space 2} -.081799{col 26}{space 2}  .037515{col 37}{space 1}   -2.18{col 46}{space 3}0.029{col 54}{space 4} -.155327{col 67}{space 3}-.0082709
{txt}{space 4}lnGDPbar {c |}{col 14}{res}{space 2} .3913234{col 26}{space 2} .2142487{col 37}{space 1}    1.83{col 46}{space 3}0.068{col 54}{space 4}-.0285964{col 67}{space 3} .8112431
{txt}{space 2}lnKLRATbar {c |}{col 14}{res}{space 2} .1462444{col 26}{space 2} .0213939{col 37}{space 1}    6.84{col 46}{space 3}0.000{col 54}{space 4} .1043132{col 67}{space 3} .1881756
{txt}{space 2}lnSKILLbar {c |}{col 14}{res}{space 2} .2226922{col 26}{space 2}  .066571{col 37}{space 1}    3.35{col 46}{space 3}0.001{col 54}{space 4} .0922155{col 67}{space 3} .3531689
{txt}{space 2}lnLABORbar {c |}{col 14}{res}{space 2}-.6093298{col 26}{space 2} .1597255{col 37}{space 1}   -3.81{col 46}{space 3}0.000{col 54}{space 4} -.922386{col 67}{space 3}-.2962735
{txt}{space 3}lnMARKbar {c |}{col 14}{res}{space 2} .0869517{col 26}{space 2} .1610934{col 37}{space 1}    0.54{col 46}{space 3}0.589{col 54}{space 4}-.2287856{col 67}{space 3}  .402689
{txt}{space 1}lnPOPDENbar {c |}{col 14}{res}{space 2}  .770934{col 26}{space 2} .1389765{col 37}{space 1}    5.55{col 46}{space 3}0.000{col 54}{space 4} .4985451{col 67}{space 3} 1.043323
{txt}{space 1}lnINFRASbar {c |}{col 14}{res}{space 2} .0021829{col 26}{space 2}  .077623{col 37}{space 1}    0.03{col 46}{space 3}0.978{col 54}{space 4}-.1499553{col 67}{space 3} .1543211
{txt}lnFINANCEbar {c |}{col 14}{res}{space 2} .2503936{col 26}{space 2} .0913857{col 37}{space 1}    2.74{col 46}{space 3}0.006{col 54}{space 4} .0712809{col 67}{space 3} .4295063
{txt}{space 1}lnINVFORbar {c |}{col 14}{res}{space 2}  -.00115{col 26}{space 2} .0332024{col 37}{space 1}   -0.03{col 46}{space 3}0.972{col 54}{space 4}-.0662254{col 67}{space 3} .0639254
{txt}{space 4}y2006bar {c |}{col 14}{res}{space 2}-.0598647{col 26}{space 2} .1054403{col 37}{space 1}   -0.57{col 46}{space 3}0.570{col 54}{space 4} -.266524{col 67}{space 3} .1467946
{txt}{space 4}y2007bar {c |}{col 14}{res}{space 2}-.0206834{col 26}{space 2} .1029807{col 37}{space 1}   -0.20{col 46}{space 3}0.841{col 54}{space 4} -.222522{col 67}{space 3} .1811551
{txt}{space 4}y2008bar {c |}{col 14}{res}{space 2} .0622048{col 26}{space 2} .1282673{col 37}{space 1}    0.48{col 46}{space 3}0.628{col 54}{space 4}-.1891946{col 67}{space 3} .3136042
{txt}{space 4}y2009bar {c |}{col 14}{res}{space 2}-.0931287{col 26}{space 2} .1567271{col 37}{space 1}   -0.59{col 46}{space 3}0.552{col 54}{space 4}-.4003081{col 67}{space 3} .2140507
{txt}{space 7}_cons {c |}{col 14}{res}{space 2} .9210349{col 26}{space 2} 1.012792{col 37}{space 1}    0.91{col 46}{space 3}0.363{col 54}{space 4}   -1.064{col 67}{space 3}  2.90607
{txt}{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{res}/PROFITS     {txt}{c |}
{space 5}lndelta {c |}{col 14}{res}{space 2}  8.19503{col 26}{space 2}  .052256{col 54}{space 4}  8.09261{col 67}{space 3}  8.29745
{txt}{hline 13}{c BT}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{res}
{txt}Class{col 16}: {res}2
{txt}Response{col 16}: {res}PROFITS
{txt}Model{col 16}: {res}nbreg, dispersion(constant)

{txt}{ralign 78:(Std. Err. adjusted for {res:15,034} clusters in FIRM_id)}
{hline 13}{c TT}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{col 14}{c |}{col 26}    Robust
{col 14}{c |}      Coef.{col 26}   Std. Err.{col 38}      z{col 46}   P>|z|{col 54}     [95% Con{col 67}f. Interval]
{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{res}PROFITS      {txt}{c |}
{space 9}ETR {c |}{col 14}{res}{space 2}-.0118591{col 26}{space 2} .0024065{col 37}{space 1}   -4.93{col 46}{space 3}0.000{col 54}{space 4}-.0165757{col 67}{space 3}-.0071426
{txt}{space 5}lnSALES {c |}{col 14}{res}{space 2} .4730342{col 26}{space 2} .0552023{col 37}{space 1}    8.57{col 46}{space 3}0.000{col 54}{space 4} .3648398{col 67}{space 3} .5812286
{txt}{space 7}lnEMP {c |}{col 14}{res}{space 2} .1422125{col 26}{space 2} .0600721{col 37}{space 1}    2.37{col 46}{space 3}0.018{col 54}{space 4} .0244733{col 67}{space 3} .2599517
{txt}{space 7}lnGDP {c |}{col 14}{res}{space 2} .5569896{col 26}{space 2} .3539621{col 37}{space 1}    1.57{col 46}{space 3}0.116{col 54}{space 4}-.1367633{col 67}{space 3} 1.250742
{txt}{space 5}lnKLRAT {c |}{col 14}{res}{space 2} .0522887{col 26}{space 2} .0343874{col 37}{space 1}    1.52{col 46}{space 3}0.128{col 54}{space 4}-.0151094{col 67}{space 3} .1196868
{txt}{space 5}lnSKILL {c |}{col 14}{res}{space 2}-.1532219{col 26}{space 2} .1243792{col 37}{space 1}   -1.23{col 46}{space 3}0.218{col 54}{space 4}-.3970006{col 67}{space 3} .0905568
{txt}{space 5}lnLABOR {c |}{col 14}{res}{space 2}-.1940116{col 26}{space 2} .1843603{col 37}{space 1}   -1.05{col 46}{space 3}0.293{col 54}{space 4}-.5553511{col 67}{space 3} .1673279
{txt}{space 6}lnMARK {c |}{col 14}{res}{space 2}  .018041{col 26}{space 2} .2310409{col 37}{space 1}    0.08{col 46}{space 3}0.938{col 54}{space 4}-.4347908{col 67}{space 3} .4708727
{txt}{space 4}lnPOPDEN {c |}{col 14}{res}{space 2}-.1641505{col 26}{space 2} .2311044{col 37}{space 1}   -0.71{col 46}{space 3}0.478{col 54}{space 4}-.6171068{col 67}{space 3} .2888059
{txt}{space 4}lnINFRAS {c |}{col 14}{res}{space 2}-.1741413{col 26}{space 2}  .089311{col 37}{space 1}   -1.95{col 46}{space 3}0.051{col 54}{space 4}-.3491876{col 67}{space 3}  .000905
{txt}{space 3}lnFINANCE {c |}{col 14}{res}{space 2} .0119391{col 26}{space 2} .1302975{col 37}{space 1}    0.09{col 46}{space 3}0.927{col 54}{space 4}-.2434393{col 67}{space 3} .2673175
{txt}{space 4}lnINVFOR {c |}{col 14}{res}{space 2}-.0170129{col 26}{space 2} .0887292{col 37}{space 1}   -0.19{col 46}{space 3}0.848{col 54}{space 4}-.1909189{col 67}{space 3} .1568932
{txt}{space 7}y2006 {c |}{col 14}{res}{space 2}-.0365476{col 26}{space 2} .0575515{col 37}{space 1}   -0.64{col 46}{space 3}0.525{col 54}{space 4}-.1493464{col 67}{space 3} .0762512
{txt}{space 7}y2007 {c |}{col 14}{res}{space 2}-.0325869{col 26}{space 2} .1137207{col 37}{space 1}   -0.29{col 46}{space 3}0.774{col 54}{space 4}-.2554754{col 67}{space 3} .1903017
{txt}{space 7}y2008 {c |}{col 14}{res}{space 2}-.1231564{col 26}{space 2} .1606305{col 37}{space 1}   -0.77{col 46}{space 3}0.443{col 54}{space 4}-.4379865{col 67}{space 3} .1916736
{txt}{space 7}y2009 {c |}{col 14}{res}{space 2} .0361841{col 26}{space 2} .2005492{col 37}{space 1}    0.18{col 46}{space 3}0.857{col 54}{space 4} -.356885{col 67}{space 3} .4292533
{txt}{space 6}ETRbar {c |}{col 14}{res}{space 2} .0023232{col 26}{space 2} .0060535{col 37}{space 1}    0.38{col 46}{space 3}0.701{col 54}{space 4}-.0095414{col 67}{space 3} .0141879
{txt}{space 2}lnSALESbar {c |}{col 14}{res}{space 2}  .014889{col 26}{space 2} .0509738{col 37}{space 1}    0.29{col 46}{space 3}0.770{col 54}{space 4}-.0850178{col 67}{space 3} .1147959
{txt}{space 4}lnEMPbar {c |}{col 14}{res}{space 2}-.0461374{col 26}{space 2} .0628154{col 37}{space 1}   -0.73{col 46}{space 3}0.463{col 54}{space 4}-.1692533{col 67}{space 3} .0769785
{txt}{space 4}lnGDPbar {c |}{col 14}{res}{space 2}-.3770274{col 26}{space 2} .3452654{col 37}{space 1}   -1.09{col 46}{space 3}0.275{col 54}{space 4}-1.053735{col 67}{space 3} .2996803
{txt}{space 2}lnKLRATbar {c |}{col 14}{res}{space 2} .0529136{col 26}{space 2} .0399524{col 37}{space 1}    1.32{col 46}{space 3}0.185{col 54}{space 4}-.0253916{col 67}{space 3} .1312188
{txt}{space 2}lnSKILLbar {c |}{col 14}{res}{space 2} .1545653{col 26}{space 2} .1332479{col 37}{space 1}    1.16{col 46}{space 3}0.246{col 54}{space 4}-.1065957{col 67}{space 3} .4157263
{txt}{space 2}lnLABORbar {c |}{col 14}{res}{space 2} .1867825{col 26}{space 2} .2695033{col 37}{space 1}    0.69{col 46}{space 3}0.488{col 54}{space 4}-.3414342{col 67}{space 3} .7149992
{txt}{space 3}lnMARKbar {c |}{col 14}{res}{space 2} .0970678{col 26}{space 2} .2382692{col 37}{space 1}    0.41{col 46}{space 3}0.684{col 54}{space 4}-.3699313{col 67}{space 3} .5640668
{txt}{space 1}lnPOPDENbar {c |}{col 14}{res}{space 2} .0718158{col 26}{space 2} .2310278{col 37}{space 1}    0.31{col 46}{space 3}0.756{col 54}{space 4}-.3809902{col 67}{space 3} .5246219
{txt}{space 1}lnINFRASbar {c |}{col 14}{res}{space 2} .2084554{col 26}{space 2} .0993246{col 37}{space 1}    2.10{col 46}{space 3}0.036{col 54}{space 4} .0137828{col 67}{space 3} .4031281
{txt}lnFINANCEbar {c |}{col 14}{res}{space 2}-.1409406{col 26}{space 2} .1601049{col 37}{space 1}   -0.88{col 46}{space 3}0.379{col 54}{space 4}-.4547404{col 67}{space 3} .1728592
{txt}{space 1}lnINVFORbar {c |}{col 14}{res}{space 2}-.0733926{col 26}{space 2}  .095672{col 37}{space 1}   -0.77{col 46}{space 3}0.443{col 54}{space 4}-.2609062{col 67}{space 3}  .114121
{txt}{space 4}y2006bar {c |}{col 14}{res}{space 2}-.0714627{col 26}{space 2} .2102397{col 37}{space 1}   -0.34{col 46}{space 3}0.734{col 54}{space 4} -.483525{col 67}{space 3} .3405996
{txt}{space 4}y2007bar {c |}{col 14}{res}{space 2}-.3136838{col 26}{space 2} .2311329{col 37}{space 1}   -1.36{col 46}{space 3}0.175{col 54}{space 4}-.7666959{col 67}{space 3} .1393284
{txt}{space 4}y2008bar {c |}{col 14}{res}{space 2} .2681748{col 26}{space 2} .2697743{col 37}{space 1}    0.99{col 46}{space 3}0.320{col 54}{space 4}-.2605731{col 67}{space 3} .7969226
{txt}{space 4}y2009bar {c |}{col 14}{res}{space 2}-.3796742{col 26}{space 2} .3114544{col 37}{space 1}   -1.22{col 46}{space 3}0.223{col 54}{space 4}-.9901136{col 67}{space 3} .2307652
{txt}{space 7}_cons {c |}{col 14}{res}{space 2} 1.860836{col 26}{space 2} 1.994593{col 37}{space 1}    0.93{col 46}{space 3}0.351{col 54}{space 4}-2.048494{col 67}{space 3} 5.770166
{txt}{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{res}/PROFITS     {txt}{c |}
{space 5}lndelta {c |}{col 14}{res}{space 2} 11.56458{col 26}{space 2} .1269961{col 54}{space 4} 11.31567{col 67}{space 3} 11.81348
{txt}{hline 13}{c BT}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}

{com}. test _b[PROFITS:2.Class#c.ETR] - _b[PROFITS:1.Class#c.ETR]==0

{p 0 7}{space 1}{text:( 1)}{space 1}{space 1}{res}- [PROFITS]1bn.Class#c.ETR + [PROFITS]2.Class#c.ETR = 0{p_end}

{txt}{col 12}chi2(  1) ={res}    0.00
{txt}{col 10}Prob > chi2 =  {res}  0.9689
{txt}
{com}. est store component2
{txt}
{com}. estat ic

Akaike's information criterion and Bayesian information criterion

{txt}{hline 13}{c TT}{hline 63}
       Model {c |}        Obs  ll(null)  ll(model)      df         AIC        BIC
{hline 13}{c +}{hline 63}
{ralign 12:{stata estimates replay component2:component2}}{col 14}{c |}{res}{col 16}    44,743{col 27}        .{col 38}-445055.3{col 49}    69{col 58} 890248.5{col 69} 890849.4
{txt}{hline 13}{c BT}{hline 63}
{p 15 21 2}
Note: N=Obs used in calculating BIC; see {helpb bic_note:[R] BIC note}.
{p_end}

{com}. matrix comp2 = r(S)
{txt}
{com}. 
. // Evidence that the 2 component model is better that 1 component model
. matrix list comp1 
{res}
{txt}comp1[1,6]
                     N         ll0          ll          df         AIC         BIC
component1 {res}      44743  -473126.91  -458277.46          34   916622.91   916919.01
{reset}
{com}. matrix list comp2
{res}
{txt}comp2[1,6]
                     N         ll0          ll          df         AIC         BIC
component2 {res}      44743           .  -445055.26          69   890248.51   890849.41
{reset}
{com}. lrtest component1 component2, force

{txt}Likelihood-ratio test{col 55}LR chi2({res}35{txt}){col 67}={res}  26444.40
{txt}(Assumption: {res}{stata est replay component1:component1}{txt} nested in {res}{stata est replay component2:component2}{txt}){col 55}Prob > chi2 = {res}   0.0000
{txt}
{com}. 
. // Characteristics of each group
. predict fmmpos1 if insample == 1 , classposteriorpr class(1) 
{res}{txt}
{com}. predict fmmpos2 if insample == 1, classposteriorpr class(2)   
{res}{txt}
{com}. count if fmmpos1>fmmpos2  
  {res}39,142
{txt}
{com}. scalar group1 = r(N)
{txt}
{com}. count if fmmpos1<fmmpos2
  {res}5,601
{txt}
{com}. scalar group2 = r(N)    
{txt}
{com}. scalar pctgroup1 = group1/(group1+group2)
{txt}
{com}. scalar pctgroup2 = group2/(group1+group2)
{txt}
{com}. display pctgroup1 pctgroup2
{res}.87481841.12518159
{txt}
{com}. 
. // Creating dummy variables to identify both groups
. gen group1=(fmmpos1>fmmpos2)
{txt}
{com}. gen group2=(fmmpos1<fmmpos2)
{txt}
{com}. 
. summ PROFITS if group1 == 1

{txt}    Variable {c |}        Obs        Mean    Std. Dev.       Min        Max
{hline 13}{c +}{hline 57}
{space 5}PROFITS {c |}{res}     39,142    8578.963    19573.26          2    1850925
{txt}
{com}. scalar TOTALPROFITS1 = r(N)*r(mean)
{txt}
{com}. summ ASSETS if group1 == 1

{txt}    Variable {c |}        Obs        Mean    Std. Dev.       Min        Max
{hline 13}{c +}{hline 57}
{space 6}ASSETS {c |}{res}     39,140    34371.82    166653.6          1   1.36e+07
{txt}
{com}. scalar TOTALASSETS1 = r(N)*r(mean)
{txt}
{com}. 
. summ PROFITS if group2 == 1

{txt}    Variable {c |}        Obs        Mean    Std. Dev.       Min        Max
{hline 13}{c +}{hline 57}
{space 5}PROFITS {c |}{res}      5,601    166523.9    472342.4          3   1.47e+07
{txt}
{com}. scalar TOTALPROFITS2 = r(N)*r(mean)
{txt}
{com}. summ ASSETS if group2 == 1

{txt}    Variable {c |}        Obs        Mean    Std. Dev.       Min        Max
{hline 13}{c +}{hline 57}
{space 6}ASSETS {c |}{res}      5,601      342446     1088867          5   2.21e+07
{txt}
{com}. scalar TOTALASSETS2 = r(N)*r(mean)
{txt}
{com}. 
. scalar PROFITSHARE1 = 100*TOTALPROFITS1/(TOTALPROFITS1 + TOTALPROFITS2)
{txt}
{com}. scalar ASSETSHARE1 = 100*TOTALASSETS1/(TOTALASSETS1 + TOTALASSETS2)
{txt}
{com}. scalar list PROFITSHARE1 ASSETSHARE1
{txt}PROFITSHARE1 = {res} 26.472078
{txt}ASSETSHARE1 = {res} 41.224865
{txt}
{com}. 
. summ ASSETS PROFITS EMP SALES if group1 == 1

{txt}    Variable {c |}        Obs        Mean    Std. Dev.       Min        Max
{hline 13}{c +}{hline 57}
{space 6}ASSETS {c |}{res}     39,140    34371.82    166653.6          1   1.36e+07
{txt}{space 5}PROFITS {c |}{res}     39,142    8578.963    19573.26          2    1850925
{txt}{space 9}EMP {c |}{res}     39,142    325.6236    743.2234          9      52440
{txt}{space 7}SALES {c |}{res}     39,142      151874    574702.8         41   3.21e+07
{txt}
{com}. 
. scalar PROFITSHARE2 = 100*TOTALPROFITS2/(TOTALPROFITS1 + TOTALPROFITS2)
{txt}
{com}. scalar ASSETSHARE2 = 100*TOTALASSETS2/(TOTALASSETS1 + TOTALASSETS2)
{txt}
{com}. scalar list PROFITSHARE2 ASSETSHARE2
{txt}PROFITSHARE2 = {res} 73.527922
{txt}ASSETSHARE2 = {res} 58.775135
{txt}
{com}. 
. summ ASSETS PROFITS EMP SALES if group2 == 1

{txt}    Variable {c |}        Obs        Mean    Std. Dev.       Min        Max
{hline 13}{c +}{hline 57}
{space 6}ASSETS {c |}{res}      5,601      342446     1088867          5   2.21e+07
{txt}{space 5}PROFITS {c |}{res}      5,601    166523.9    472342.4          3   1.47e+07
{txt}{space 9}EMP {c |}{res}      5,601    1359.283    5187.784          9     198971
{txt}{space 7}SALES {c |}{res}      5,601     1826364     7112251        890   1.92e+08
{txt}
{com}. 
. ******** WITH INTERACTION EFFECT ***********
. 
. gen treatdum = (year>2007)
{txt}
{com}. gen ETRxTD = ETR*treatdum
{txt}
{com}. 
. bysort FIRM_id: egen ETRxTDbar = mean(ETRxTD)
{txt}
{com}. 
. nbreg PROFITS ETR ETRxTD lnSALES lnEMP lnGDP lnKLRAT lnSKILL lnLABOR lnMARK lnPOPDEN ///
>   lnINFRAS lnFINANCE lnINVFOR y2006-y2009 ETRbar ETRxTDbar lnSALESbar lnEMPbar lnGDPbar ///
>   lnKLRATbar lnSKILLbar lnLABORbar lnMARKbar lnPOPDENbar lnINFRASbar lnFINANCEbar ///
>   lnINVFORbar y2006bar y2007bar y2008bar y2009bar if insample == 1, dispersion(constant) vce(cluster FIRM_id)

{txt}Fitting Poisson model:
{res}
{txt}Iteration 0:{space 3}log pseudolikelihood = {res:-1.629e+09}  
Iteration 1:{space 3}log pseudolikelihood = {res:-7.184e+08}  
Iteration 2:{space 3}log pseudolikelihood = {res:-4.146e+08}  
Iteration 3:{space 3}log pseudolikelihood = {res:-4.089e+08}  
Iteration 4:{space 3}log pseudolikelihood = {res:-4.089e+08}  
Iteration 5:{space 3}log pseudolikelihood = {res:-4.089e+08}  
{res}
{txt}Fitting constant-only model:
{res}
{txt}Iteration 0:{space 3}log pseudolikelihood = {res:-8.758e+08}  
Iteration 1:{space 3}log pseudolikelihood = {res:-528895.02}  
Iteration 2:{space 3}log pseudolikelihood = {res:-473186.66}  
Iteration 3:{space 3}log pseudolikelihood = {res:-473126.94}  
Iteration 4:{space 3}log pseudolikelihood = {res:-473126.91}  
{res}
{txt}Fitting full model:
{res}
{txt}Iteration 0:{space 3}log pseudolikelihood = {res:-473126.91}  
Iteration 1:{space 3}log pseudolikelihood = {res:-461701.59}  
Iteration 2:{space 3}log pseudolikelihood = {res:-459168.76}  
Iteration 3:{space 3}log pseudolikelihood = {res:-458268.34}  
Iteration 4:{space 3}log pseudolikelihood = {res:-458259.72}  
Iteration 5:{space 3}log pseudolikelihood = {res:-458259.71}  
{res}
{txt}Negative binomial regression{col 49}Number of obs{col 67}= {res}    44,743
{txt}{col 49}Wald chi2({res}34{txt}){col 67}= {res}   2755.45
{txt}{col 1}Dispersion{col 22}= {res}constant{txt}{col 49}Prob > chi2{col 67}= {res}    0.0000
{txt}Log pseudolikelihood = {res}-458259.71{txt}{col 49}Pseudo R2{col 67}= {res}    0.0314

{txt}{ralign 78:(Std. Err. adjusted for {res:15,034} clusters in FIRM_id)}
{hline 13}{c TT}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{col 14}{c |}{col 26}    Robust
{col 1}     PROFITS{col 14}{c |}      Coef.{col 26}   Std. Err.{col 38}      z{col 46}   P>|z|{col 54}     [95% Con{col 67}f. Interval]
{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{space 9}ETR {c |}{col 14}{res}{space 2}-.0090133{col 26}{space 2} .0013161{col 37}{space 1}   -6.85{col 46}{space 3}0.000{col 54}{space 4}-.0115928{col 67}{space 3}-.0064337
{txt}{space 6}ETRxTD {c |}{col 14}{res}{space 2}-.0042934{col 26}{space 2} .0021754{col 37}{space 1}   -1.97{col 46}{space 3}0.048{col 54}{space 4}-.0085572{col 67}{space 3}-.0000297
{txt}{space 5}lnSALES {c |}{col 14}{res}{space 2}  .510461{col 26}{space 2}  .026806{col 37}{space 1}   19.04{col 46}{space 3}0.000{col 54}{space 4} .4579222{col 67}{space 3} .5629998
{txt}{space 7}lnEMP {c |}{col 14}{res}{space 2} .1105883{col 26}{space 2} .0265331{col 37}{space 1}    4.17{col 46}{space 3}0.000{col 54}{space 4} .0585844{col 67}{space 3} .1625922
{txt}{space 7}lnGDP {c |}{col 14}{res}{space 2} .3642151{col 26}{space 2} .2062299{col 37}{space 1}    1.77{col 46}{space 3}0.077{col 54}{space 4} -.039988{col 67}{space 3} .7684183
{txt}{space 5}lnKLRAT {c |}{col 14}{res}{space 2} .0135966{col 26}{space 2} .0144815{col 37}{space 1}    0.94{col 46}{space 3}0.348{col 54}{space 4}-.0147867{col 67}{space 3} .0419798
{txt}{space 5}lnSKILL {c |}{col 14}{res}{space 2}-.0879359{col 26}{space 2} .0474654{col 37}{space 1}   -1.85{col 46}{space 3}0.064{col 54}{space 4}-.1809665{col 67}{space 3} .0050946
{txt}{space 5}lnLABOR {c |}{col 14}{res}{space 2}-.0211678{col 26}{space 2}    .0898{col 37}{space 1}   -0.24{col 46}{space 3}0.814{col 54}{space 4}-.1971726{col 67}{space 3}  .154837
{txt}{space 6}lnMARK {c |}{col 14}{res}{space 2} .1009003{col 26}{space 2}  .115448{col 37}{space 1}    0.87{col 46}{space 3}0.382{col 54}{space 4}-.1253736{col 67}{space 3} .3271742
{txt}{space 4}lnPOPDEN {c |}{col 14}{res}{space 2}-.2390772{col 26}{space 2} .0933234{col 37}{space 1}   -2.56{col 46}{space 3}0.010{col 54}{space 4}-.4219877{col 67}{space 3}-.0561667
{txt}{space 4}lnINFRAS {c |}{col 14}{res}{space 2}-.1231708{col 26}{space 2} .0558394{col 37}{space 1}   -2.21{col 46}{space 3}0.027{col 54}{space 4} -.232614{col 67}{space 3}-.0137277
{txt}{space 3}lnFINANCE {c |}{col 14}{res}{space 2}-.0719873{col 26}{space 2}  .060332{col 37}{space 1}   -1.19{col 46}{space 3}0.233{col 54}{space 4}-.1902358{col 67}{space 3} .0462611
{txt}{space 4}lnINVFOR {c |}{col 14}{res}{space 2}-.0070658{col 26}{space 2} .0424458{col 37}{space 1}   -0.17{col 46}{space 3}0.868{col 54}{space 4} -.090258{col 67}{space 3} .0761265
{txt}{space 7}y2006 {c |}{col 14}{res}{space 2}-.0478025{col 26}{space 2} .0325613{col 37}{space 1}   -1.47{col 46}{space 3}0.142{col 54}{space 4}-.1116214{col 67}{space 3} .0160164
{txt}{space 7}y2007 {c |}{col 14}{res}{space 2}-.0754935{col 26}{space 2} .0641027{col 37}{space 1}   -1.18{col 46}{space 3}0.239{col 54}{space 4}-.2011324{col 67}{space 3} .0501454
{txt}{space 7}y2008 {c |}{col 14}{res}{space 2}-.0698436{col 26}{space 2}  .113391{col 37}{space 1}   -0.62{col 46}{space 3}0.538{col 54}{space 4} -.292086{col 67}{space 3} .1523988
{txt}{space 7}y2009 {c |}{col 14}{res}{space 2} .0285242{col 26}{space 2} .1365253{col 37}{space 1}    0.21{col 46}{space 3}0.835{col 54}{space 4}-.2390605{col 67}{space 3} .2961089
{txt}{space 6}ETRbar {c |}{col 14}{res}{space 2}-.0007569{col 26}{space 2} .0041123{col 37}{space 1}   -0.18{col 46}{space 3}0.854{col 54}{space 4}-.0088169{col 67}{space 3} .0073032
{txt}{space 3}ETRxTDbar {c |}{col 14}{res}{space 2} .0013499{col 26}{space 2} .0067323{col 37}{space 1}    0.20{col 46}{space 3}0.841{col 54}{space 4}-.0118452{col 67}{space 3}  .014545
{txt}{space 2}lnSALESbar {c |}{col 14}{res}{space 2}  .086514{col 26}{space 2} .0262328{col 37}{space 1}    3.30{col 46}{space 3}0.001{col 54}{space 4} .0350987{col 67}{space 3} .1379293
{txt}{space 4}lnEMPbar {c |}{col 14}{res}{space 2}-.0700087{col 26}{space 2} .0305842{col 37}{space 1}   -2.29{col 46}{space 3}0.022{col 54}{space 4}-.1299527{col 67}{space 3}-.0100647
{txt}{space 4}lnGDPbar {c |}{col 14}{res}{space 2}-.1769443{col 26}{space 2} .2042972{col 37}{space 1}   -0.87{col 46}{space 3}0.386{col 54}{space 4}-.5773596{col 67}{space 3} .2234709
{txt}{space 2}lnKLRATbar {c |}{col 14}{res}{space 2} .0912841{col 26}{space 2} .0188959{col 37}{space 1}    4.83{col 46}{space 3}0.000{col 54}{space 4} .0542488{col 67}{space 3} .1283194
{txt}{space 2}lnSKILLbar {c |}{col 14}{res}{space 2} .1084377{col 26}{space 2} .0571361{col 37}{space 1}    1.90{col 46}{space 3}0.058{col 54}{space 4} -.003547{col 67}{space 3} .2204225
{txt}{space 2}lnLABORbar {c |}{col 14}{res}{space 2}-.1298579{col 26}{space 2} .1480819{col 37}{space 1}   -0.88{col 46}{space 3}0.381{col 54}{space 4}-.4200932{col 67}{space 3} .1603773
{txt}{space 3}lnMARKbar {c |}{col 14}{res}{space 2} .0607957{col 26}{space 2} .1220665{col 37}{space 1}    0.50{col 46}{space 3}0.618{col 54}{space 4}-.1784501{col 67}{space 3} .3000416
{txt}{space 1}lnPOPDENbar {c |}{col 14}{res}{space 2} .1686391{col 26}{space 2} .0924739{col 37}{space 1}    1.82{col 46}{space 3}0.068{col 54}{space 4}-.0126065{col 67}{space 3} .3498847
{txt}{space 1}lnINFRASbar {c |}{col 14}{res}{space 2} .1521499{col 26}{space 2} .0628579{col 37}{space 1}    2.42{col 46}{space 3}0.015{col 54}{space 4} .0289507{col 67}{space 3} .2753491
{txt}lnFINANCEbar {c |}{col 14}{res}{space 2}-.0751807{col 26}{space 2} .0811968{col 37}{space 1}   -0.93{col 46}{space 3}0.354{col 54}{space 4}-.2343235{col 67}{space 3}  .083962
{txt}{space 1}lnINVFORbar {c |}{col 14}{res}{space 2} -.055029{col 26}{space 2} .0469204{col 37}{space 1}   -1.17{col 46}{space 3}0.241{col 54}{space 4}-.1469913{col 67}{space 3} .0369333
{txt}{space 4}y2006bar {c |}{col 14}{res}{space 2} .0309728{col 26}{space 2} .1186261{col 37}{space 1}    0.26{col 46}{space 3}0.794{col 54}{space 4}-.2015301{col 67}{space 3} .2634758
{txt}{space 4}y2007bar {c |}{col 14}{res}{space 2}-.1009097{col 26}{space 2} .1291334{col 37}{space 1}   -0.78{col 46}{space 3}0.435{col 54}{space 4}-.3540065{col 67}{space 3} .1521871
{txt}{space 4}y2008bar {c |}{col 14}{res}{space 2} .2635902{col 26}{space 2} .2371324{col 37}{space 1}    1.11{col 46}{space 3}0.266{col 54}{space 4}-.2011807{col 67}{space 3} .7283612
{txt}{space 4}y2009bar {c |}{col 14}{res}{space 2}-.1245703{col 26}{space 2} .2689338{col 37}{space 1}   -0.46{col 46}{space 3}0.643{col 54}{space 4}-.6516708{col 67}{space 3} .4025303
{txt}{space 7}_cons {c |}{col 14}{res}{space 2} 1.069516{col 26}{space 2} 1.195154{col 37}{space 1}    0.89{col 46}{space 3}0.371{col 54}{space 4}-1.272942{col 67}{space 3} 3.411975
{txt}{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{space 4}/lndelta {c |}{col 14}{res}{space 2} 10.22178{col 26}{space 2} .0648312{col 54}{space 4} 10.09472{col 67}{space 3} 10.34885
{txt}{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
       delta {c |}{col 14}{res}{space 2} 27495.66{col 26}{space 2} 1782.576{col 54}{space 4} 24214.74{col 67}{space 3} 31221.13
{txt}{hline 13}{c BT}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}

{com}. est store component1
{txt}
{com}. estat ic

Akaike's information criterion and Bayesian information criterion

{txt}{hline 13}{c TT}{hline 63}
       Model {c |}        Obs  ll(null)  ll(model)      df         AIC        BIC
{hline 13}{c +}{hline 63}
{ralign 12:{stata estimates replay component1:component1}}{col 14}{c |}{res}{col 16}    44,743{col 27}-473126.9{col 38}-458259.7{col 49}    36{col 58} 916591.4{col 69} 916904.9
{txt}{hline 13}{c BT}{hline 63}
{p 15 21 2}
Note: N=Obs used in calculating BIC; see {helpb bic_note:[R] BIC note}.
{p_end}

{com}. matrix comp1 = r(S)
{txt}
{com}. 
. fmm 2 if insample == 1, vce(cluster FIRM_id)  : nbreg PROFITS ETR ETRxTD  lnSALES lnEMP ///
>   lnGDP lnKLRAT lnSKILL lnLABOR lnMARK lnPOPDEN lnINFRAS lnFINANCE lnINVFOR ///
>   y2006-y2009 ETRbar ETRxTDbar lnSALESbar lnEMPbar lnGDPbar ///
>   lnKLRATbar lnSKILLbar lnLABORbar lnMARKbar lnPOPDENbar lnINFRASbar lnFINANCEbar ///
>   lnINVFORbar y2006bar y2007bar y2008bar y2009bar, dispersion(constant)
{res}{txt}
Fitting class model:

Iteration 0:{space 3}(class) log likelihood = {res:-31013.484}  
Iteration 1:{space 3}(class) log likelihood = {res:-31013.484}  

Fitting outcome model:

Iteration 0:{space 3}(outcome) log likelihood = {res:-3.418e+08}  (not concave)
Iteration 1:{space 3}(outcome) log likelihood = {res:-613104.43}  (not concave)
Iteration 2:{space 3}(outcome) log likelihood = {res:-566557.23}  (not concave)
Iteration 3:{space 3}(outcome) log likelihood = {res:-502274.22}  (not concave)
Iteration 4:{space 3}(outcome) log likelihood = {res:-478492.23}  (not concave)
Iteration 5:{space 3}(outcome) log likelihood = {res:-467801.16}  
Iteration 6:{space 3}(outcome) log likelihood = {res:-461466.81}  
Iteration 7:{space 3}(outcome) log likelihood = {res:-457756.81}  
Iteration 8:{space 3}(outcome) log likelihood = {res:-456946.18}  
Iteration 9:{space 3}(outcome) log likelihood = {res: -456932.2}  
Iteration 10:{space 2}(outcome) log likelihood = {res:-456932.19}  

Refining starting values:

Iteration 0:{space 3}(EM) log likelihood = {res:-482132.38}
Iteration 1:{space 3}(EM) log likelihood = {res:-474991.28}
Iteration 2:{space 3}(EM) log likelihood = {res:-468670.14}
Iteration 3:{space 3}(EM) log likelihood = {res:-464669.37}
Iteration 4:{space 3}(EM) log likelihood = {res:-462584.41}
Iteration 5:{space 3}(EM) log likelihood = {res:-461549.09}
Iteration 6:{space 3}(EM) log likelihood = {res:-461006.31}
Iteration 7:{space 3}(EM) log likelihood = {res:-460687.33}
Iteration 8:{space 3}(EM) log likelihood = {res:-460473.74}
Iteration 9:{space 3}(EM) log likelihood = {res: -460314.1}
Iteration 10:{space 2}(EM) log likelihood = {res:-460185.57}
Iteration 11:{space 2}(EM) log likelihood = {res:-460077.57}
Iteration 12:{space 2}(EM) log likelihood = {res:-459984.88}
Iteration 13:{space 2}(EM) log likelihood = {res:-459904.53}
Iteration 14:{space 2}(EM) log likelihood = {res:-459834.55}
Iteration 15:{space 2}(EM) log likelihood = {res:-459773.45}
Iteration 16:{space 2}(EM) log likelihood = {res:-459720.12}
Iteration 17:{space 2}(EM) log likelihood = {res:-459673.66}
Iteration 18:{space 2}(EM) log likelihood = {res:-459633.31}
Iteration 19:{space 2}(EM) log likelihood = {res:-459598.38}
Iteration 20:{space 2}(EM) log likelihood = {res:-459568.23}
{p}
Note: EM algorithm reached maximum iterations.
{p_end}

Fitting full model:
{res}
{txt}Iteration 0:{space 3}log pseudolikelihood = {res:-445049.77}  
Iteration 1:{space 3}log pseudolikelihood = {res:-445047.82}  
Iteration 2:{space 3}log pseudolikelihood = {res:-445047.78}  
{res}
{txt}Finite mixture model{col 49}Number of obs{col 67}= {res}    44,743
{txt}Log pseudolikelihood = {res}-445047.78

{txt}{ralign 78:(Std. Err. adjusted for {res:15,034} clusters in FIRM_id)}
{hline 13}{c TT}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{col 14}{c |}{col 26}    Robust
{col 14}{c |}      Coef.{col 26}   Std. Err.{col 38}      z{col 46}   P>|z|{col 54}     [95% Con{col 67}f. Interval]
{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{col 1}{res}1.Class     {col 14}{txt}{c |}  (base outcome)
{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{res}2.Class      {txt}{c |}
{space 7}_cons {c |}{col 14}{res}{space 2} -1.32407{col 26}{space 2} .0798216{col 37}{space 1}  -16.59{col 46}{space 3}0.000{col 54}{space 4}-1.480518{col 67}{space 3}-1.167623
{txt}{hline 13}{c BT}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{res}
{txt}Class{col 16}: {res}1
{txt}Response{col 16}: {res}PROFITS
{txt}Model{col 16}: {res}nbreg, dispersion(constant)

{txt}{ralign 78:(Std. Err. adjusted for {res:15,034} clusters in FIRM_id)}
{hline 13}{c TT}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{col 14}{c |}{col 26}    Robust
{col 14}{c |}      Coef.{col 26}   Std. Err.{col 38}      z{col 46}   P>|z|{col 54}     [95% Con{col 67}f. Interval]
{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{res}PROFITS      {txt}{c |}
{space 9}ETR {c |}{col 14}{res}{space 2}-.0112527{col 26}{space 2} .0008968{col 37}{space 1}  -12.55{col 46}{space 3}0.000{col 54}{space 4}-.0130104{col 67}{space 3}-.0094951
{txt}{space 6}ETRxTD {c |}{col 14}{res}{space 2}-.0018677{col 26}{space 2} .0016317{col 37}{space 1}   -1.14{col 46}{space 3}0.252{col 54}{space 4}-.0050659{col 67}{space 3} .0013304
{txt}{space 5}lnSALES {c |}{col 14}{res}{space 2} .6657166{col 26}{space 2} .0315881{col 37}{space 1}   21.07{col 46}{space 3}0.000{col 54}{space 4} .6038051{col 67}{space 3} .7276281
{txt}{space 7}lnEMP {c |}{col 14}{res}{space 2}  .058577{col 26}{space 2} .0411374{col 37}{space 1}    1.42{col 46}{space 3}0.154{col 54}{space 4}-.0220507{col 67}{space 3} .1392048
{txt}{space 7}lnGDP {c |}{col 14}{res}{space 2}-.2126086{col 26}{space 2} .2273126{col 37}{space 1}   -0.94{col 46}{space 3}0.350{col 54}{space 4}-.6581331{col 67}{space 3} .2329159
{txt}{space 5}lnKLRAT {c |}{col 14}{res}{space 2}-.0162258{col 26}{space 2} .0200023{col 37}{space 1}   -0.81{col 46}{space 3}0.417{col 54}{space 4}-.0554296{col 67}{space 3} .0229779
{txt}{space 5}lnSKILL {c |}{col 14}{res}{space 2}-.1507405{col 26}{space 2}  .065944{col 37}{space 1}   -2.29{col 46}{space 3}0.022{col 54}{space 4}-.2799884{col 67}{space 3}-.0214925
{txt}{space 5}lnLABOR {c |}{col 14}{res}{space 2} .2276583{col 26}{space 2} .1297245{col 37}{space 1}    1.75{col 46}{space 3}0.079{col 54}{space 4} -.026597{col 67}{space 3} .4819136
{txt}{space 6}lnMARK {c |}{col 14}{res}{space 2} .1922231{col 26}{space 2} .1584522{col 37}{space 1}    1.21{col 46}{space 3}0.225{col 54}{space 4}-.1183374{col 67}{space 3} .5027836
{txt}{space 4}lnPOPDEN {c |}{col 14}{res}{space 2}-.7807916{col 26}{space 2} .1310839{col 37}{space 1}   -5.96{col 46}{space 3}0.000{col 54}{space 4}-1.037711{col 67}{space 3}-.5238718
{txt}{space 4}lnINFRAS {c |}{col 14}{res}{space 2}-.0427457{col 26}{space 2} .0693114{col 37}{space 1}   -0.62{col 46}{space 3}0.537{col 54}{space 4}-.1785936{col 67}{space 3} .0931022
{txt}{space 3}lnFINANCE {c |}{col 14}{res}{space 2}-.3750942{col 26}{space 2} .0880735{col 37}{space 1}   -4.26{col 46}{space 3}0.000{col 54}{space 4} -.547715{col 67}{space 3}-.2024733
{txt}{space 4}lnINVFOR {c |}{col 14}{res}{space 2}-.0168915{col 26}{space 2} .0265173{col 37}{space 1}   -0.64{col 46}{space 3}0.524{col 54}{space 4}-.0688644{col 67}{space 3} .0350814
{txt}{space 7}y2006 {c |}{col 14}{res}{space 2} .0205872{col 26}{space 2} .0377029{col 37}{space 1}    0.55{col 46}{space 3}0.585{col 54}{space 4}-.0533091{col 67}{space 3} .0944834
{txt}{space 7}y2007 {c |}{col 14}{res}{space 2} .0194438{col 26}{space 2} .0764484{col 37}{space 1}    0.25{col 46}{space 3}0.799{col 54}{space 4}-.1303922{col 67}{space 3} .1692798
{txt}{space 7}y2008 {c |}{col 14}{res}{space 2} .0708431{col 26}{space 2} .1115465{col 37}{space 1}    0.64{col 46}{space 3}0.525{col 54}{space 4}-.1477841{col 67}{space 3} .2894703
{txt}{space 7}y2009 {c |}{col 14}{res}{space 2} .1679039{col 26}{space 2} .1409715{col 37}{space 1}    1.19{col 46}{space 3}0.234{col 54}{space 4}-.1083952{col 67}{space 3}  .444203
{txt}{space 6}ETRbar {c |}{col 14}{res}{space 2}-.0057903{col 26}{space 2} .0017222{col 37}{space 1}   -3.36{col 46}{space 3}0.001{col 54}{space 4}-.0091658{col 67}{space 3}-.0024149
{txt}{space 3}ETRxTDbar {c |}{col 14}{res}{space 2}-.0010486{col 26}{space 2} .0037588{col 37}{space 1}   -0.28{col 46}{space 3}0.780{col 54}{space 4}-.0084157{col 67}{space 3} .0063184
{txt}{space 2}lnSALESbar {c |}{col 14}{res}{space 2} .0386861{col 26}{space 2}  .033368{col 37}{space 1}    1.16{col 46}{space 3}0.246{col 54}{space 4} -.026714{col 67}{space 3} .1040861
{txt}{space 4}lnEMPbar {c |}{col 14}{res}{space 2}-.0807926{col 26}{space 2} .0394568{col 37}{space 1}   -2.05{col 46}{space 3}0.041{col 54}{space 4}-.1581265{col 67}{space 3}-.0034586
{txt}{space 4}lnGDPbar {c |}{col 14}{res}{space 2} .4066024{col 26}{space 2} .2266274{col 37}{space 1}    1.79{col 46}{space 3}0.073{col 54}{space 4}-.0375792{col 67}{space 3} .8507839
{txt}{space 2}lnKLRATbar {c |}{col 14}{res}{space 2} .1455766{col 26}{space 2}  .022353{col 37}{space 1}    6.51{col 46}{space 3}0.000{col 54}{space 4} .1017655{col 67}{space 3} .1893877
{txt}{space 2}lnSKILLbar {c |}{col 14}{res}{space 2} .2262371{col 26}{space 2} .0672888{col 37}{space 1}    3.36{col 46}{space 3}0.001{col 54}{space 4} .0943536{col 67}{space 3} .3581207
{txt}{space 2}lnLABORbar {c |}{col 14}{res}{space 2}-.6092894{col 26}{space 2} .1582612{col 37}{space 1}   -3.85{col 46}{space 3}0.000{col 54}{space 4}-.9194756{col 67}{space 3}-.2991032
{txt}{space 3}lnMARKbar {c |}{col 14}{res}{space 2} .0838753{col 26}{space 2} .1633923{col 37}{space 1}    0.51{col 46}{space 3}0.608{col 54}{space 4}-.2363676{col 67}{space 3} .4041183
{txt}{space 1}lnPOPDENbar {c |}{col 14}{res}{space 2} .7735446{col 26}{space 2} .1345583{col 37}{space 1}    5.75{col 46}{space 3}0.000{col 54}{space 4} .5098152{col 67}{space 3} 1.037274
{txt}{space 1}lnINFRASbar {c |}{col 14}{res}{space 2}-.0019382{col 26}{space 2} .0770456{col 37}{space 1}   -0.03{col 46}{space 3}0.980{col 54}{space 4}-.1529448{col 67}{space 3} .1490684
{txt}lnFINANCEbar {c |}{col 14}{res}{space 2}  .244884{col 26}{space 2} .0911955{col 37}{space 1}    2.69{col 46}{space 3}0.007{col 54}{space 4} .0661442{col 67}{space 3} .4236238
{txt}{space 1}lnINVFORbar {c |}{col 14}{res}{space 2}-.0024206{col 26}{space 2} .0328498{col 37}{space 1}   -0.07{col 46}{space 3}0.941{col 54}{space 4}-.0668051{col 67}{space 3} .0619638
{txt}{space 4}y2006bar {c |}{col 14}{res}{space 2} -.060142{col 26}{space 2} .1034337{col 37}{space 1}   -0.58{col 46}{space 3}0.561{col 54}{space 4}-.2628684{col 67}{space 3} .1425843
{txt}{space 4}y2007bar {c |}{col 14}{res}{space 2}-.0265593{col 26}{space 2} .1052918{col 37}{space 1}   -0.25{col 46}{space 3}0.801{col 54}{space 4}-.2329275{col 67}{space 3} .1798089
{txt}{space 4}y2008bar {c |}{col 14}{res}{space 2} .0734742{col 26}{space 2} .1468025{col 37}{space 1}    0.50{col 46}{space 3}0.617{col 54}{space 4}-.2142534{col 67}{space 3} .3612018
{txt}{space 4}y2009bar {c |}{col 14}{res}{space 2} -.084085{col 26}{space 2} .1721082{col 37}{space 1}   -0.49{col 46}{space 3}0.625{col 54}{space 4}-.4214108{col 67}{space 3} .2532409
{txt}{space 7}_cons {c |}{col 14}{res}{space 2} .8624768{col 26}{space 2} 1.003108{col 37}{space 1}    0.86{col 46}{space 3}0.390{col 54}{space 4}-1.103579{col 67}{space 3} 2.828533
{txt}{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{res}/PROFITS     {txt}{c |}
{space 5}lndelta {c |}{col 14}{res}{space 2}  8.19364{col 26}{space 2} .0513655{col 54}{space 4} 8.092965{col 67}{space 3} 8.294314
{txt}{hline 13}{c BT}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{res}
{txt}Class{col 16}: {res}2
{txt}Response{col 16}: {res}PROFITS
{txt}Model{col 16}: {res}nbreg, dispersion(constant)

{txt}{ralign 78:(Std. Err. adjusted for {res:15,034} clusters in FIRM_id)}
{hline 13}{c TT}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{col 14}{c |}{col 26}    Robust
{col 14}{c |}      Coef.{col 26}   Std. Err.{col 38}      z{col 46}   P>|z|{col 54}     [95% Con{col 67}f. Interval]
{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{res}PROFITS      {txt}{c |}
{space 9}ETR {c |}{col 14}{res}{space 2}-.0104893{col 26}{space 2} .0024935{col 37}{space 1}   -4.21{col 46}{space 3}0.000{col 54}{space 4}-.0153764{col 67}{space 3}-.0056022
{txt}{space 6}ETRxTD {c |}{col 14}{res}{space 2}  -.00334{col 26}{space 2} .0044108{col 37}{space 1}   -0.76{col 46}{space 3}0.449{col 54}{space 4}-.0119851{col 67}{space 3} .0053051
{txt}{space 5}lnSALES {c |}{col 14}{res}{space 2} .4762063{col 26}{space 2} .0553989{col 37}{space 1}    8.60{col 46}{space 3}0.000{col 54}{space 4} .3676264{col 67}{space 3} .5847862
{txt}{space 7}lnEMP {c |}{col 14}{res}{space 2} .1398366{col 26}{space 2} .0614527{col 37}{space 1}    2.28{col 46}{space 3}0.023{col 54}{space 4} .0193915{col 67}{space 3} .2602817
{txt}{space 7}lnGDP {c |}{col 14}{res}{space 2} .5623629{col 26}{space 2} .3628461{col 37}{space 1}    1.55{col 46}{space 3}0.121{col 54}{space 4}-.1488023{col 67}{space 3} 1.273528
{txt}{space 5}lnKLRAT {c |}{col 14}{res}{space 2} .0509563{col 26}{space 2} .0354051{col 37}{space 1}    1.44{col 46}{space 3}0.150{col 54}{space 4}-.0184365{col 67}{space 3}  .120349
{txt}{space 5}lnSKILL {c |}{col 14}{res}{space 2} -.155733{col 26}{space 2} .1190592{col 37}{space 1}   -1.31{col 46}{space 3}0.191{col 54}{space 4}-.3890847{col 67}{space 3} .0776188
{txt}{space 5}lnLABOR {c |}{col 14}{res}{space 2} -.189471{col 26}{space 2} .1858606{col 37}{space 1}   -1.02{col 46}{space 3}0.308{col 54}{space 4} -.553751{col 67}{space 3}  .174809
{txt}{space 6}lnMARK {c |}{col 14}{res}{space 2}  .015025{col 26}{space 2} .2406818{col 37}{space 1}    0.06{col 46}{space 3}0.950{col 54}{space 4}-.4567026{col 67}{space 3} .4867526
{txt}{space 4}lnPOPDEN {c |}{col 14}{res}{space 2}-.1663068{col 26}{space 2}  .222238{col 37}{space 1}   -0.75{col 46}{space 3}0.454{col 54}{space 4}-.6018852{col 67}{space 3} .2692716
{txt}{space 4}lnINFRAS {c |}{col 14}{res}{space 2}-.1812608{col 26}{space 2} .0913258{col 37}{space 1}   -1.98{col 46}{space 3}0.047{col 54}{space 4} -.360256{col 67}{space 3}-.0022656
{txt}{space 3}lnFINANCE {c |}{col 14}{res}{space 2} .0131014{col 26}{space 2} .1302636{col 37}{space 1}    0.10{col 46}{space 3}0.920{col 54}{space 4}-.2422107{col 67}{space 3} .2684134
{txt}{space 4}lnINVFOR {c |}{col 14}{res}{space 2}-.0192562{col 26}{space 2} .0925853{col 37}{space 1}   -0.21{col 46}{space 3}0.835{col 54}{space 4}-.2007201{col 67}{space 3} .1622078
{txt}{space 7}y2006 {c |}{col 14}{res}{space 2}-.0393273{col 26}{space 2} .0594228{col 37}{space 1}   -0.66{col 46}{space 3}0.508{col 54}{space 4}-.1557939{col 67}{space 3} .0771392
{txt}{space 7}y2007 {c |}{col 14}{res}{space 2}-.0366785{col 26}{space 2} .1179513{col 37}{space 1}   -0.31{col 46}{space 3}0.756{col 54}{space 4}-.2678588{col 67}{space 3} .1945017
{txt}{space 7}y2008 {c |}{col 14}{res}{space 2}-.0732602{col 26}{space 2} .2096741{col 37}{space 1}   -0.35{col 46}{space 3}0.727{col 54}{space 4}-.4842139{col 67}{space 3} .3376934
{txt}{space 7}y2009 {c |}{col 14}{res}{space 2}  .085851{col 26}{space 2} .2518609{col 37}{space 1}    0.34{col 46}{space 3}0.733{col 54}{space 4}-.4077873{col 67}{space 3} .5794893
{txt}{space 6}ETRbar {c |}{col 14}{res}{space 2} .0021944{col 26}{space 2} .0078819{col 37}{space 1}    0.28{col 46}{space 3}0.781{col 54}{space 4}-.0132538{col 67}{space 3} .0176426
{txt}{space 3}ETRxTDbar {c |}{col 14}{res}{space 2} .0002554{col 26}{space 2} .0130657{col 37}{space 1}    0.02{col 46}{space 3}0.984{col 54}{space 4}-.0253529{col 67}{space 3} .0258637
{txt}{space 2}lnSALESbar {c |}{col 14}{res}{space 2} .0131011{col 26}{space 2} .0501108{col 37}{space 1}    0.26{col 46}{space 3}0.794{col 54}{space 4}-.0851143{col 67}{space 3} .1113166
{txt}{space 4}lnEMPbar {c |}{col 14}{res}{space 2}-.0440866{col 26}{space 2}   .06391{col 37}{space 1}   -0.69{col 46}{space 3}0.490{col 54}{space 4} -.169348{col 67}{space 3} .0811747
{txt}{space 4}lnGDPbar {c |}{col 14}{res}{space 2}-.3828982{col 26}{space 2} .3563211{col 37}{space 1}   -1.07{col 46}{space 3}0.283{col 54}{space 4}-1.081275{col 67}{space 3} .3154783
{txt}{space 2}lnKLRATbar {c |}{col 14}{res}{space 2} .0536314{col 26}{space 2}  .041459{col 37}{space 1}    1.29{col 46}{space 3}0.196{col 54}{space 4}-.0276267{col 67}{space 3} .1348895
{txt}{space 2}lnSKILLbar {c |}{col 14}{res}{space 2}   .15488{col 26}{space 2} .1271367{col 37}{space 1}    1.22{col 46}{space 3}0.223{col 54}{space 4}-.0943032{col 67}{space 3} .4040633
{txt}{space 2}lnLABORbar {c |}{col 14}{res}{space 2} .1772941{col 26}{space 2} .2690766{col 37}{space 1}    0.66{col 46}{space 3}0.510{col 54}{space 4}-.3500864{col 67}{space 3} .7046746
{txt}{space 3}lnMARKbar {c |}{col 14}{res}{space 2} .1004412{col 26}{space 2} .2456767{col 37}{space 1}    0.41{col 46}{space 3}0.683{col 54}{space 4}-.3810763{col 67}{space 3} .5819586
{txt}{space 1}lnPOPDENbar {c |}{col 14}{res}{space 2}  .072441{col 26}{space 2} .2221835{col 37}{space 1}    0.33{col 46}{space 3}0.744{col 54}{space 4}-.3630306{col 67}{space 3} .5079126
{txt}{space 1}lnINFRASbar {c |}{col 14}{res}{space 2} .2165908{col 26}{space 2} .0989235{col 37}{space 1}    2.19{col 46}{space 3}0.029{col 54}{space 4} .0227043{col 67}{space 3} .4104774
{txt}lnFINANCEbar {c |}{col 14}{res}{space 2} -.140095{col 26}{space 2} .1588989{col 37}{space 1}   -0.88{col 46}{space 3}0.378{col 54}{space 4}-.4515311{col 67}{space 3} .1713412
{txt}{space 1}lnINVFORbar {c |}{col 14}{res}{space 2}-.0694586{col 26}{space 2} .1002499{col 37}{space 1}   -0.69{col 46}{space 3}0.488{col 54}{space 4}-.2659448{col 67}{space 3} .1270277
{txt}{space 4}y2006bar {c |}{col 14}{res}{space 2} -.066347{col 26}{space 2}  .214214{col 37}{space 1}   -0.31{col 46}{space 3}0.757{col 54}{space 4}-.4861986{col 67}{space 3} .3535047
{txt}{space 4}y2007bar {c |}{col 14}{res}{space 2}-.3042125{col 26}{space 2} .2354657{col 37}{space 1}   -1.29{col 46}{space 3}0.196{col 54}{space 4}-.7657168{col 67}{space 3} .1572917
{txt}{space 4}y2008bar {c |}{col 14}{res}{space 2} .2628106{col 26}{space 2} .4184967{col 37}{space 1}    0.63{col 46}{space 3}0.530{col 54}{space 4}-.5574279{col 67}{space 3} 1.083049
{txt}{space 4}y2009bar {c |}{col 14}{res}{space 2}-.3789997{col 26}{space 2} .4765685{col 37}{space 1}   -0.80{col 46}{space 3}0.426{col 54}{space 4}-1.313057{col 67}{space 3} .5550575
{txt}{space 7}_cons {c |}{col 14}{res}{space 2} 1.890668{col 26}{space 2} 1.981439{col 37}{space 1}    0.95{col 46}{space 3}0.340{col 54}{space 4}-1.992881{col 67}{space 3} 5.774217
{txt}{hline 13}{c +}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}
{res}/PROFITS     {txt}{c |}
{space 5}lndelta {c |}{col 14}{res}{space 2} 11.56022{col 26}{space 2} .1289388{col 54}{space 4} 11.30751{col 67}{space 3} 11.81294
{txt}{hline 13}{c BT}{hline 11}{hline 11}{hline 9}{hline 8}{hline 13}{hline 12}

{com}. test _b[PROFITS:2.Class#c.ETRxTD] - _b[PROFITS:1.Class#c.ETRxTD]==0

{p 0 7}{space 1}{text:( 1)}{space 1}{space 1}{res}- [PROFITS]1bn.Class#c.ETRxTD + [PROFITS]2.Class#c.ETRxTD = 0{p_end}

{txt}{col 12}chi2(  1) ={res}    0.07
{txt}{col 10}Prob > chi2 =  {res}  0.7928
{txt}
{com}. est store component2
{txt}
{com}. estat ic

Akaike's information criterion and Bayesian information criterion

{txt}{hline 13}{c TT}{hline 63}
       Model {c |}        Obs  ll(null)  ll(model)      df         AIC        BIC
{hline 13}{c +}{hline 63}
{ralign 12:{stata estimates replay component2:component2}}{col 14}{c |}{res}{col 16}    44,743{col 27}        .{col 38}-445047.8{col 49}    73{col 58} 890241.6{col 69} 890877.3
{txt}{hline 13}{c BT}{hline 63}
{p 15 21 2}
Note: N=Obs used in calculating BIC; see {helpb bic_note:[R] BIC note}.
{p_end}

{com}. matrix comp2 = r(S)
{txt}
{com}. 
. // Evidence that the 2 component model is better that 1 component model
. matrix list comp1 
{res}
{txt}comp1[1,6]
                     N         ll0          ll          df         AIC         BIC
component1 {res}      44743  -473126.91  -458259.71          36   916591.42   916904.93
{reset}
{com}. matrix list comp2
{res}
{txt}comp2[1,6]
                     N         ll0          ll          df         AIC         BIC
component2 {res}      44743           .  -445047.78          73   890241.56    890877.3
{reset}
{com}. lrtest component1 component2, force

{txt}Likelihood-ratio test{col 55}LR chi2({res}37{txt}){col 67}={res}  26423.86
{txt}(Assumption: {res}{stata est replay component1:component1}{txt} nested in {res}{stata est replay component2:component2}{txt}){col 55}Prob > chi2 = {res}   0.0000
{txt}
{com}. 
. etime
{res}Elapsed time is 1 minutes 24 seconds 
{txt}
{com}. 
. log close
      {txt}name:  {res}<unnamed>
       {txt}log:  {res}\\file\UsersW$\wrr15\Home\My Documents\My Files\FIGO'S PAPER\REVISION FOR ECONOMICS E-JOURNAL\Revision (20180407)\FILES FROM FIGO (20180420)\Robust1Results.smcl
  {txt}log type:  {res}smcl
 {txt}closed on:  {res}20 Apr 2018, 09:07:12
{txt}{.-}
{smcl}
{txt}{sf}{ul off}